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Cenvat credit rules 6(6)

S. Banerjee (Practising Cost Accountant. Core area- Central Excise. Service Tax Costing system installation including maintenance of Cost Records and Cost Audit and Management Audit mainly Revenue leakages Audit) (622 Points)

02 May 2013

A manufacturer is engaged in the manufacture of exempted and dutiable goods and Cenvat on duty paid inputs availed but not maintained separate accounts.
Under Rule 6 of Cenvat Credit Rules for domestic clearance 6% duty reversed. Whether he has to reversed 6% on export clearances or not based on the CBEC Circular No 928/18/2010 CX dt 28.6.2010 and Notification No 24/2010 CE(NT)dt 26.5.2010?

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3 Replies

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 03 May 2013

No need to reverse the cenvat credit on export of exempted goods.

Mr. Singh,

Thank you for prompt response.

But you have not mentioned any supproting Notification No. behind your opinion. You are requseted to provide the same if you have.

I have raised the query based on the above mentioned Circular and Notification issued by CBEC.

I am also requested to the other senior members of this club to look over the matter.

mahendra gohil (MANAGER -TAXATION) (21 Points)
Replied 06 May 2013

Dear ,

There is no requirement of reversing any cenvat credit if exempted goods cleared for exports.

Rule 6(6) of Cenvat Credit Rule states that provisions of rules 6(1), 6(2), 6(3) and 6(4) are not applicable , if excisable final product is despatched without payment of duty, in following cases –

	Final product is despatched to SEZ, EOU, EHTP or STP (Actually, supply to SEZ is ‘export’ and not ‘deemed export’).
	Final product is supplied to United Nations or an international organisation for their official use or supplied to projects funded by them, which are exempt from duty.
	When final product is exported under bond without payment of duty
	Gold or silver arising in course of manufacture of copper or zinc by smelting.
	Goods supplied against International Competitive Bidding in terms of Notification No. 6/2006-CE dated 1-3-2006 or earlier Notification No. 6/2002-CE dated 1-3-2002, if such goods are exempt from customs duty when imported in India